Page 3 - FWP Wealth Adviser newsletter - Issue 117: August 2025

ISSUE 117
AUGUST 2025

• Reframe your mindset: Instead of seeing the delay as a success. Australian psychologists and finance experts agree:
loss, view it as an investment in your own future wellbe- financial self-control is at the heart of wealth, security, and
ing. Small, regular actions—like rounding up on pur- peace of mind.
chases to save extra or putting tax refunds straight into As you weigh your next financial decision, consider what
super—become powerful over time. your future self would thank you for. Understanding and
• Shield yourself from impulse: Use “cooling off” periods applying the time value of money is an investment that
before major purchases, and reflect on the long-term delivers enduring dividends—not only in dollars, but in the
impact of big financial decisions. Budgeting tools and confidence and freedom it brings.
thinking about your future goals put current sacrifices in
positive perspective.
References
Even experienced investors and finance professionals • “We Have Trouble Understanding the Time Value of Money,” Graham
benefit from these steps. The key is making good habits Hand, Firstlinks, May 2024.
automatic so that time and compounding work with you, • “Time Value of Money: What It Is and How It Works,” James Chen,
not against you. Investopedia, April 2024.
• “Investing Basics: What Is the Time Value of Money?” Emma Rapaport,
Conclusion: Choosing Future You—Why Patience Morningstar Australia, June 2023.
and Planning Pay Off • “Chapter 2 – Present and Future Values,” OER Collective, Council of
The time value of money is more than just a financial Australian University Librarians (CAUL), 2022.
concept; it’s a way to frame life’s trade-offs. Every dollar you • “What Is Time Value of Money?” GoCardless Australia, February 2024.
spend now is a trade-off against what you could achieve or • “What Does the ‘Time Value of Money’ Mean?” Financial Edge Group,
enjoy tomorrow. Patience and planning aren’t just financial Australia, March 2023.
strengths—they’re core life skills that underpin resilience, • Mischel, W. (2014). The Marshmallow Test: Understanding Self-Control
independence, and long-term security. and How to Master It. Little, Brown & Co.
Philosophers have long said that the ability to wait and • Thaler, R. H., & Sunstein, C. R. (2008). Nudge: Improving Decisions
work for a greater outcome is a foundation of happiness and About Health, Wealth, and Happiness. Penguin Books.

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